asbms MARKETING LECTURE 1.ppt

7/29/2019 asbms MARKETING LECTURE 1.ppt

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The right

product, in the

right place, atthe right time,

and at the right

price


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Marketing is the human activity directed

at satisfying human needs and wants

through an exchange process

Kotler


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Marketing is a social and

managerial process by which

individuals and groups obtain whatthey want and need through

creating, offering and exchanging

products of value with others

Kotler


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FOUR ERAS IN THE HISTORY OF MARKETING

Exchange process Activity in which two or more parties give something of

value to each other to satisfy perceived need.


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Origins of Marketing

1850-1925 Production Era

1925-1952 Sales Era

1952-1990 Marketing Era 1990- today Relationship Era


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Marketing in the new milenium

Substantial increase in buying power

A greater variety of goods and services

A greater amount of information aboutpractically anything

A greater ease in interacting and placing andreceiving orders

An ability to compare notes on products andservices


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Marketing in the new milenium

Business at the speed of thought

Consumer a coproducer of product and serices

Virtual Enterprise The role of distribution channe

Enviornmentakl Protection

Customer a warehouse of informationl


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Marketing in The New Millenium

Websites can provide companies with powerfulnew information and sales channels.

Companies can collect fuller and richer

information about markets, customers,prospects and competitors.

Companies can facilitate and speed upcommunications among employees.

Companies can have 2-way communicationwith customers and prospects


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Implications of marketing

Who are our existing / potential customers?

What are their current / future needs?

How can we satisfy these needs?Can we offer a product/ service that the customer

would value?

Can we communicate with our customers?

Can we deliver a competitive product of service?

Why should customers buy from us?


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Marketing as Concept

Marketing meens under satanding the customers

need and responding to it It ia matter of orientation

Consumer Orientation

Integrated Approach to exploiting m,arket

Opportunities

Futuristic Approaches

Marketing System

Marketing Culture


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The Marketing Concept

ConsumerOrientation

GoalOrientation

MarketingConcept

Market-Driven

Approach

Value-BasedPhilosophy

IntegratedMarketing

Focus


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The Concepts in Marketing

Marketing Sedmentation and target market

market place,market space and meta market

Marketers and prospects needs wants and demand

value and satisfaction

Exchange and transactions


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Marketing Concepts

Compitition

Product and brand

marketing enviornment relationships and networks

marketing channels

suplu chain


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Thus marketing is

Analysing customer needs.

Obtaining the information necessary for design and

production that match buyer expectations.

Satisfying customer preferences.

Creating and maintaining relationships with customers and

suppliers.

TODAYS GLOBAL MARKETPLACE

Growing importance because of international agreements,growth of electronic business, and economic

interdependence.

United States size and affluence make it an attractive

market for foreign companies.


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The concepts of Marketing

CONVERTING NEEDS TO WANTS

Effective marketing focuses on the benefits resulting from

goods and services.

Companies must pay attention to what consumers want.

Example: Demand for cell phones and wireless services.


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Emergence of the Marketing Concept

Consumer orientation Business philosophy incorporatingthe marketing concept that emphasizes first determining

unmet consumer needs and then designing a system for

satisfying them.

Marketing concept Company-wide consumer orientationfor achieving long-term success.

Relationship marketing Developing and maintaining of

long-term, cost-effective relationships with individual

customers, suppliers, employees, and other partners formutual benefit.


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The marketing concept

choosing and targeting appropriate

customers

positioning your offering

interacting with those customers

controlling the marketing effortcontinuity of performance


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Marketing and Sales Concepts Contrasted


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Focus of Selling Philosophy

Production Selling Consumption


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Focus of Marketing Philosophy

Consumer

Need

Evaluation

Integrated

Marketing

Effort

Achievement ofOrganizationalGoals

Consumer

Satisfaction

Feedback


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Selling Philosophy

Output Sold to Consumers

Looks at Individual, Single Consumer

Seeks Sales Rather than Profit

Short-Term Goal Orientation

Concerned with Current Inventory Reduction

Narrower View of Consumer Needs

Little Adaptation to Environment Informal Planning and Feedback


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Marketing Philosophy

Consumer-Oriented

Stresses Researchand Consumer

Analysis Looks at Groups of

Consumers

Profit-Oriented

Directed to Long-Range Goals

Two-Way Interactive

Process

AppropriateAdaptation to MktingEnvironment

Broad View ofConsumer Needs

Integrated Planningand Feedback


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Factors That Affect

Customer Satisfaction

OverallCustomer

Satisfaction

Courteous Employees

Knowledgeable Employees

Friendly Employees

Helpful Employees

Accuracy of BillingQuick Service

Courteous Employees

Billing Clarity Billing Timeliness

Good Value Competitive Pricing


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Relationship Marketing

Through Relationship

Marketing, companies

build customer

satisfaction and increase

long-term customer

loyalty.


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Successful marketing requires:

Profitable

Offensive (rather than defensive)Integrated

Strategic (is future orientated)

Effective (gets results) Hugh Davidson 1972


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The Marketing process

Marketing is a process of transaction between a

buyer and a sellerBoth must gain

It must resuly in a long lasting relationship and

satisfying relationship among both between


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Marketing management process

Analysis/Audit - where are we now?

Objectives - where do we want to be?

Strategies - which way is best?

Tactics - how do we get there?

(Implementation - Getting there!)Control - Ensuring arrival


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Marketing Task

Ten rules of radical marketing

The CEO must own the marketing function.

Make sure the marketing department starts smalland flat and stays small and flat.

Get face to face with the people who matter most

the customers.

Use market research cautiously.

Hire only passionate missionaries.


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Marketing Task

Love and respect your customers.

Create a community of consumers.

Rethink the marketing mix.

Celebrate common sense.Be true to the brand.

Three stages of marketing practice

Entrepreneurial Marketing

Formulated Marketing

Intrepreneurial Marketing


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The Scope of Marketing

Marketing: typically seen as the taskof creating, promoting, and deliveringgoods and services to consumers

and businesses.

A j t f th k t di lik th d t1 N ti d d


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Table 1.1

Demand

States andMarketingTasks

Target consumers may be unaware of or

uninterested in the product. Farmers may not be

interested in a new farming method, and college

students may not be interested in foreign-

language courses. The marketing task is to findways to connect the benefits of the product with

peoples natural needs and interests.

2. No demand

A major part of the market dislikes the product

and may even pay a price to avoid it

vaccinations, dental work, vasectomies, and

gallbladder operations, for instance. Employers

have a negative demand for ex-convicts and

alcoholics as employees. The marketing task isto analyze why the market dislikes the product

and whether a marketing program consisting of

product redesign, lower prices, and more

positive promotion can change beliefs and

attitudes.

1. Negative demand

See text for complete table


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The Scope of Marketing

Places

Properties

Organizations Information

Ideas

Goods

Services

Experiences Events

Persons

Why is marketing planning


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Why is marketing planning

necessary?

Systematic futuristic thinking by management

better co-ordination of a companys efforts

development of performance standards for

control

sharpening of objectives and policies

better prepare for sudden developments


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This Is a Need

Needs - state of felt

deprivation includingphysical, social, and

individual needs.


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This Is a Want

Wants - form that a

human need

takes, as shapedby culture and

individual

personality.

Need / Want Fulfillment


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Need / Want Fulfillment

Needs and Wants Fulfilled

through a Marketing

Offer:

Some combination of

products, services,

information, or experiences

offered to a market to

satisfy a need or want.


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Markets,virtual and


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,

meta markets

The set of actual andpotential buyers of a

product.

These people share a

need or want that can

be satisfied through

exchangerelationships.


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8 Marketing Functions

Environmental analysis and marketing research:

Monitoring and adapting to external factors that affect success or failure,

such as the economy and competition; and collecting data to resolve

specific marketing issues.Broadening the Scope of Marketing:

Deciding on the emphasis to place, as well as the approach to take, on

societal issues, global marketing, and the Web.

Consumer analysis:

Examining and evaluating consumer characteristics, needs and

purchase processes; and selecting the group(s) of consumers at which

to aim marketing efforts.


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8 Marketing Functions continuedProduct planning(including goods, services, organizations, people,

places, ideas):

Developing and maintaining products, product assortments, productimages, brands, packaging, and optional features, and deleting falteringproducts.

Distribution planning:

Forming logistical relationships with intermediaries, physical distribution,inventory management, warehousing, transportation, allocating goodsand services, wholesaling, and retailing.

Promotion planning:

Communicating with customers, the general public, and others throughsome type of advertising, public relations, personal selling, and/or salespromotion.


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Marketing Performers

OrganizationalConsumer

MarketingSpecialist

Manufacturer orService Provider

Retailer

Wholesaler

Basic MarketingPerformers

Final Consumer


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Marketing Performers

Include:

Consumers

Manufacturers

Service Providers

Wholesalers

Retailers

Marketing Specialists


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What is Marketing Myopia?

Marketing nearsightednessmanagements failureto recognize the scope of its business.

Endangers future growth because the company isfocusing on a product rather than customer

Companys are usually to narrowly defined.


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AVOIDING MARKETING MYOPIA

Marketing myopiaManagements failure to recognize the scope of its business.


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Avoiding Marketing Myopia

Broadly define company goals toward customerneeds.

MCI: We are a telephone company. or We are acommunications company.

Northwest Airlines: We are in the airline business.or We are in the transportation business.

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